Four existing assembly lines have the flexibility to handle two products, but a
ID: 366406 • Letter: F
Question
Four existing assembly lines have the flexibility to handle two products, but a huge jump in budgeted demand requires adding additional lines. Operations are scheduled for 350 days/year with two shifts of 10 hours each per day. In order to ensure they can react to rush or large orders, a 12% capacity cushion is desired. How many additional assembly lines are needed to deal with the following forecast: Model A Model B Annual Demand 40,000 60,000 Set-up Time/ Batch 4 hrs 6 hrs Run Time per unit 1 hr 30 min Batch Size 2,000 3,000
Explanation / Answer
Capacity of a line = no. of days x available hours per day
= 350x 10x2 =7000 hours per annum
As we need a buffer of 12% the effective available time
= 7000x(1-0.12) = 6160 p.a.
Time needed for item A
No. of batches = annual demand/ batch size = 40000/2000 =20
Time consumed in a batch production =2000x1.5 =3000 hrs
Total production time =20x3000=60000
Total set up time =20x4 =80
Total time for A =60080
Time needed for item B
No. Of batches = 60000/3000 =20
Time consumed in a batch production
= 1.5x3000 = 4500
Total time of production
= 4500x 20 =90000
Set up time = 6x20=120
Total time for item B
90000+120=90120
Total time requirement for production of A and B
60080+90120 =150200
Number of lines needed = 150200/6160 = 24.38 = 25
Therefore we need 21 more lines to meet the demand.
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